Please, DVC'rs, Convince me to become a Member!

[ObsessedwithDisney]

I've been considering DVC for quite some time now, but am unable to decide if we should do it. We're visiting WDW the end of Jan, and renting points to stay at OKW (studio). I'm afraid it will be hard to leave without points! This will be our 2nd trip to WDW in less than 15 months.

One of the things that concern me the most is the maintenance dues, and having to pay them for such a long time. Plus, what happens at the end of the 40 years, or the amount left. Will its value decrease as the the length of the term gets shorter? How do you overcome these obstacles?

I also need help to convince a skeptical DH.

I realize this purchase should not be viewed as an investment, and I'm not looking at it that way. I simply love Disney, and would love to go there more often. Plus, we'd love to be able to bring our family along, who might not otherwise be able to join us for financial reasons.

I've been reading these boards for awhile, and I enjoy the comments and advice from everyone. Thank you for your help.

Kathy

 

[Dreamfinder2]

Kathy, if you've been reading these boards for a while, you've read plenty of pros and cons, and they're mostly pros. If you're going every two years or so, and stay in a moderate or better, and can imagine doing that for 40 more years, then it makes pretty good sense, financially and otherwise. As I mentioned in another post, we looked at the money we put into DVC as "anyway" money, money we'd be using for vacations. It's a pretty good hedge against inflation (as in the cost of a hotel room.)

Dues are a fact of DVC life, and you can do a search and see historical patterns for what they've been each year. So far, extreme increases have been kept in check.

At the end of 40 years (or whatever), the property reverts back to Disney. Whether there'll be an opportunity to "re-buy" is anyone's guess.

I don't think the value to you personally will go down; if anything, it'll increase, just because hotel room prices will increase and with DVC your cost (in points) is locked in. And, with the point cost continuning to rise with Disney, and the lively traffic in resales, you should be OK.

Check the "Profile of a DVCer" thread. You'll find folks from all economic levels and walks of life that'll be your neighbors. I'm betting you'll see people just like you.

And, the classic regret most of us have uttered at some point: I wish we'd bought sooner. We first looked in '92, and we could've saved thousands by buying then.

You know your financial situation. Beyond that, just follow your heart. Send me a PM, if you're comfortable with that, and I'll pass along the name of our "guide" (cute name for a salesperson!) and she can get you started with no pressure or hassle.

 

[Jacksmom99]

It's sounds like you've convinced yourself... I'm not the one to ask about the numbers, but I looked at our dues statement yesterday. We split 300 VWL points with my FIL. The dues for 2003 are around $1180. We will be done paying for our points in 2006. After that we pay just 98.00 per month split between the two of us. I know that the cost of dues will go up as times goes on, but so will the cost of rooms at WDW. Eventually we will own all the points, and pay all the dues. I don't think $1200 a year is unreasonable for a deluxe room. In addition, you get to bring your family and have the flexiblity of different sized accomodations. We are also finding ways to make more than one trip a year, which we never thought we'd do, but now have the means because our rooms are basically paid for. My mom and I planned a girls weekend for the Food and Wine Festival because we had some left over points that needed to be used

Anyway, hope this helps. We love DVC and can't imagine what we did before it.

 

[JimC]

Uh oh, you're hooked!

The maintenance fees have gone up at a compound rate of 3.1% per year at OKW since 1993 (other DVC properties have gone up as little as 1.5% per year and as high as 4.3% per year, with BCV being an anomaly as this year was a larger increase than normal -- it jumped 5.4% and has been open only a few months). Resort rates have gone up about 4.6% during the same time (as have the cost of points at DVC).

When we were making the decision, I forecast the cash flows (cost and fees) for studios and one bedrooms and compared that to moderate Disney Club discounted and deluxe Annual Pass discounted rooms. We will break even in ten years. If we used the rates for comparable rooms (one bedroom) it would be about half that amount of time.

I don't know what will happen in January 2042. Our rights terminate then. DVC could create a new program, extend the old program, do both, do nothing. I would only be guesssing. There are others on this Board who are more able than I to speak to this.

But by then we will have had many years of Disney fun, at a cost much lower than we had been paying before DVC.

We ended up buying BCV from Disney (Byron Helgeson) and OKW resale from The Timeshare Store (Pat Spell). Both were first class people to work with.

Good luck with your decision and enjoy your trip.

 

[ncligs]

Kathy,
Welcome to the DIS!! If you have been reading the boards, then you know most of the advantages and disadvantages of DVC. If you plan on going at least every other year, it is a good idea to look into DVC.
The most important advice I would give is to buy(home resort) where you plan on staying the most(11 month window). I am sure once your DH stays in a 1BR he will be convinced.

 

[MELSMICE]

Kathy -

We had all the same questions & concerns that you have voiced. When we went in Nov. we rented pts. at OKW in a 2BR. My DH who was skeptical for years (we had taken the tour at least 3X) was sold the minute we walked into the unit. He likes to stay somewhere where he can feel at home - this was his dream "hotel unit". He loved the grounds on OKW & he loved that it was quiet & away from the hustle & bustle of Disney, but still a Disney resort. He was impressed by the fact that while it was about 10 years old it was well maintained & did not show wear & tear.

We have gone to WDW every year for the last 10 years or so, sometimes 2X, so as many have said, we now regret not buying sooner. We wouldn't have spent so much money on accommodations every year. Because we go every year we feel that paying the dues will be like paying for the accommodations. We would have spent that money regardless.

We also feel that as our 3 DD's get older we will not always have family time together. They all love Disney & we hope this will give us a place to always be together. We also hope that as they start their own families we will be able to take our grandchildren there someday.

 

[WDWguruDH]

First off, the accomodations are great! Except for some suites, they are 2nd to none at Disney.
There is a dozen ways to do the math, but the simplest comparison is:
Resale:
With closing costs and everything, we got them at $63.75 a point, 41 years and current dues at $4.10(on the high end) a point, thus:
63.75/41 = 1.55 a point
1.55 + 4.10 = 5.65 a point
5.65 * 28 = 158.20 a night with no tax to pay
But that is without tax(you don't pay resort tax on DVC), figure a 17% rate to keep apples to apples and you get $135.21 a night hotel rate for a 1 bedroom.
Through Disney:
Even using the current selling price of $84 a point, you still get a rate of $173.60, or $148 figuring in tax.
You are lucky if you can even get a moderate at that rate(current rack rate is $159 + tax), thus the 1 bedroom is an amazing deal...that is why we have done two add-ons. The bigger the accomodations(2 bdrm vs two rooms), the wider the gap.
Even if you consider financing, the impact is at most 8%(over the life of points) on the purchase, thus 8% on the 1.55 a point or about $0.12 a point, or about 3.13 night.
Dues will go up, but closer to inflation than the average rate hike on the resort rooms, thus the gap will continue to widen.

 

[WDWLVR]

Only you will know if it is right for you, but I can tell you that joining DVC was the best decision we ever did.

Our points are now paid for (including a recent 100 point add on at Vero Beach). We should break even money wise on one of our next two trips (based on what we paid for our points vs. what we would pay rack rate for the accomodations we have had). We've done a studio, one bedroom (our favorite) and a two bedroom.

We have used the points for ourself, brought my in-laws along for a trip (not the best idea) and made reservations for my in-laws to go to Vero without us (a much better idea for all concerned).

We still sometimes travel without using our points (like the quick weekend trip we recently took to see the holiday decorations), but the points assure us that we'll be visiting Disney every year.

As for the dues - once your points are paid for the dues are all you are paying for as far as your accomodations - much less than if you tried to get the same rooms for cash.

As others have said by reading the boards you can see the pros and cons of DVC ownership. It was the right decision for us and hope it will be for you too!

 

[Maistre Gracey]

Aside from all the other reasons mentioned, just think how much fun you will have on the DIS Boards!
This place is great therapy between DVC trips!

 

[crisi]

I figure it this way....the points cost is sunk and I work off the dues cost.

So we are going for seven nights in a BWV two bedroom (six people) for around 290 points. 290 points x $4 in dues is around $1200.

Last year we stayed at WL, renting two rooms (six people). Room rate was around $180 a night. So around $2500 in room charges . Plus tax - call it $2900

So I'm about $1700 ahead on this next trip.

Our resale contract was around $10k (150 points, we only travel to Disney every other year and only in lower point seasons). Now, I don't bother to figure it, its spent -- if I wouldn't have bought DVC, I'd have spent the money somplace else, but most would and its fair to if you are figuring breaking even. So it would take 5.8 trips (about 11 years) to pay for itself - not worrying about inflation or interest.

My kids are 3 and 4, the resale contract will have "paid" for itself when they are 14 and 15 (assuming the same usage patterns). The extra two people are grandma and grandpa (my parents last year, his this year). But the nice thing is the flexibility. If we are only a family of four, we can just get the one bedroom - stay longer or go every year for shorter vacations. If we want to bring more people, we juggle points so we have three years available and shorten the stay a little.

Of course, there are things like having a kitchen in a one or two bedroom - we don't plan on cooking, but it wouldn't be hard for a family to save several hundred dollars every vacation by using the kitchen.

 

[ObsessedwithDisney]

You all have been very helpful. I guess you're right, though. I don't really need convincing. I want to do it; I just need to make sure its the right decision. Plus, I guess I'll feel better if we get there, fall absolutely in love, and decide we absolutely must do this. This way, at least I can't say it was an "impulse" purchase!

I look forward to reading more info about DVC - this board is great! Thanks, again!

 

[Chuck S]

Well, ummm, there's nothing wrong with impulse purchases, either.

 

[Granny]

Based on your user name, I'd have to say that DVC will probably be a good decision for you!

Good luck!

 

[imgoingtodisney]

Just please be careful. We vacationed at the Wilderness Lodge for 9 nights Oct 01. (added on another 3 nights to our original 6 on the last day). We bought into DVC Nov 02, banked our 01 points to 02 with the hopes to cruise on the Nov 30th Magic. Things happened and it will now take us 3yrs to feel the Magic and go "home" to the Wilderness Lodge. But by the time we get there the loan will be paid off for a year.
So please be careful. Dont get your hopes up too high.

 

[jimmytammy]

We like to take 1 trip to Disney a year, and for us DVC is perfect. I had a hard time convincing DW to purchase. We looked into it 2 yrs ago when prices were about $65 pt. Last Jan we bought at $75 pt. instead and added on 50 more within 4 mos. and hadnt even used initial pt purchase yet. Why did we buy 50 more so soon, because prices were fixin' to go up again w/ BCV becoming available.

Not sure what price per pt. is now but I know there up at least $10 in less than a yr. From an investment standpoint, its the best I have made in yrs. BUT dont look at it from that point of view, its just nice to know its not declining in value. I have seen DVC expand in less than a yr. with plans to continue adding more resorts to its list.

We just got back from 1st trip home and "reluctant" DW is already figuring out how to use remaining pts. We are still new at this but I am not dissapointed in DVC at all. As our children grow older and no longer will sleep in same bed or even same room its good to know we will have a choice of accomodations that will suit our needs that will be prepaid, otherwise we probably wouldnt be able to afford those types of rooms in coming years therefore no more WDW for awhile.

Bottom line, IMHO you are great candidates for DVC if you are obsessed with Disney. Take advice of most on here, dont procrastinate too long because prices will continue to rise, and you along with everybody else will be kicking yourself for not buying sooner. Good luck and hope to be welcoming you home soon.

 

[vickyBaby]

HERE WE GO AGAIN

It's taking Imgoingtodisney 3 years to "go home" because she is using points for a Disney Cruise.

So please be careful. Dont get your hopes up too high.

Sounds like you are trying to dissuade people from buying into DVC. If you are unhappy with the program, you can always attempt to sell your points.

 

[Eeyore2U]

Originally posted by imgoingtodisney
Just please be careful. We vacationed at the Wilderness Lodge for 9 nights Oct 01. (added on another 3 nights to our original 6 on the last day). We bought into DVC Nov 02, banked our 01 points to 02 with the hopes to cruise on the Nov 30th Magic. Things happened and it will now take us 3yrs to feel the Magic and go "home" to the Wilderness Lodge. But by the time we get there the loan will be paid off for a year.
So please be careful. Dont get your hopes up too high.

Please don't let IGTD's situation dissuade you. If you do a search on her and see her posts and what she has littered the boards with an opinion that MANY if not ALL disagree with. She has been treated well by DVC but can't see the forest through the trees.

DVC is a wonderful oppurtunity for a frequent visitor. DW is an accountant and her figures came to the fact based on our touring it would take five years to break even and the dues are MUCH less then discounted and rack resort rates.

It is one of the best investments we have made.

 

[I <3 Eeyore]

imgoingtodisney, haven't enough people here (including the moderators) politely asked you to stop raining on everyone's parades because of one stinking trip that disappointed you? GET OVER IT AND MOVE ON before we all end up in therapy with you. Cripes!

Kathy, my family has owned DVC for a number of years and we love it. If you plan to make many trips to the House of Mouse over the years then by all means, buy in. We've never regretted it!

 

[ncligs]

"Quote" by michelemouse"
We were also displaced 11/30 cruisers and yes, all of our points were returned to us. In addition, they were not returned to us as "Reservation Points" but went back to the original use-years and status they were when we booked the cruise. We even received a refund of the $75 booking fee. What we did with them after that was up to us. We chose to go to WDW that week and used our points at the Animal Kingdom Lodge. Now we're looking forward to our '03 cruise (also booked w/points) and looking back on great memories of WDW in '02.
"Quote by michelemouse above"

Imgoingtodisney
The above poster was on the "canceled" cruise also.Maybe you can learn from it.DVC did treat the cruisers well.That was the 1st time in the history of the DCL(Disney Cruise Line) that they canceled a cruise.There are a lot of more important things in life than to worry and get sick over than a "canceled cruise".A lot of people have never even been to WDW let alone a cruise.

 

[Dean]

DVC will have no value in 40 years and will start to decrease in value at around 25-28 years somewhat. If you want to go to WDW every year or maybe 2 and usually stay on property, you will be fine. If you're not sure, buy less points and then you can "try it out" with less risk. If things don't fit well, you're financial risk is likely around $500-1000 or so. Dues are high and will remain so so if you are afraid you can't pay them at the current amount with increases for inflaiton, that may be a reason not to buy. The trade options are too expensive to make that a reasonable reason to buy but it's nice to at least have options just in case.